Beware the Hidden Risk of Hiring Uninsured Contractors

Homeowners often face expenses to maintain or repair their property. It makes sense to look for the most affordable contractor available to do the work. Many times, homeowners come across unlicensed contractors during their search for a company to do this work. They should beware of the risks associated with hiring these uninsured contractors even though it can be tempting to.

Typically, an unlicensed contractor will provide a bid that is lower than bids from licensed contractors and will promise to do the same work. It sounds so appealing to save money and still get great workmanship that some homeowners choose to do that. However, the cheapest contractor available might be the one that will cost you the most in the long run.

Why Unlicensed Contractors in California Seem Cheaper

It’s not surprising that an unlicensed contractor would be less expensive than a licensed contractor. Uninsured contractors cut corners in ways that licensed professionals cannot, enabling them to provide lower prices.

• They do not have to pay licensing fees.
• They do not have to obtain a bond to protect their work.
• More often than not, they do not purchase liability or workers compensation insurance.

Without these added expenses, they can provide their services at a rate lower than the legitimately licensed professional. However, in doing so they also expose you, the homeowner, to serious financial and legal risks.

It is true that having a contractor’s license is not a guarantee that the work will be done well, or even properly. And since there’s no guarantee that a licensed contractor will do a better job, why should a homeowner or association care about hiring unlicensed contractors? The answer is simple: a license protects the homeowner from a myriad of problems that could arise.

Hazards Of Hiring Unlicensed Contractors

While licensing isn’t necessarily a measure of competence, it does imply a certain level of professionalism and suggests that the contractor is committed to his or her job. More significantly, licensing can protect you from a number of potential problems such as:

• 1. Code Violations & Unsafe Work

Unlicensed contractors are often unfamiliar with the applicable building codes. This can result in substandard work that fails inspections or worse, creates safety hazards which are especially dangerous when it comes to flooring installations.

• 2. Poor Quality Workmanship

Not all unlicensed contractors do poor quality work, but many lack the training and experience of licensed professionals. If your flooring gets installed improperly, you could face costly repairs or end up needing to have the whole project redone.

• 3. Poor Quality Workmanship

A homeowner who hires an unlicensed contractor can also be liable for the negligence of the contractor. A neighboring property, a passerby or other property that is damaged by the contractor can lead to liability problems for the person who hired the unlicensed contractor. In California, homeowners who hire unlicensed contractors may be considered the employer and thus liable for medical bills, lost wages, & more.

• 4. Property Damage Without Coverage

Most licensed flooring contractors typically carry general liability insurance. So if something unfortunate happens, like water damage from improper installation – you’re covered. If contractors do not carry general liability insurance, they should be able to explain how they would cover losses that would ordinarily be covered by insurance. If your contractor damages your property and doesn’t carry commercial general liability insurance, you or your insurance policy could end up paying for it.

• 5. No Legal Recourse (No ‘Contracts’)

In California, licensed contractors are regulated by the Contractors State License Board (CSLB). If something goes wrong, consumers can file a complaint and potentially recover damages. While this doesn’t necessarily ensure a contractor will play fair, it gives him or her considerably more incentive to do so. However, regulatory authorities cannot take this sort of action against unlicensed contractors.

Can I Get In Trouble for Hiring an Unlicensed Contractor in California?

Simply put, yes. In California, if the project cost exceeds $1000 including labor & materials, then the contractor must be licensed. Knowingly hiring an unlicensed contractor could result in:

• Homeowner held liable for injuries or damages
• Homeowner loses right to recover damages in court
• Homeowner could face fines or penalties or be required to pay for corrective work

The risk of hiring an uninsured contractor isn’t just financial – it’s legally risky as well.

Protect Your Home by Hiring a Licensed Flooring Contractor in Campbell, CA

Slaugherbeck Floors is fully licensed, bonded, & insured to provide expert flooring services throughout Campbell and its surrounding areas. Don’t take any chances with your home or business, trust a licensed flooring contractor who puts your safety and satisfaction first.

• Visit our Licensing & Insurance Information Page
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• See Testimonials From our Clients
• View Press Coverage of our Work & Expertise